Why does the bicycle industry produce too many bicycles?

What drives the bicycle industry to repeatedly produce more bicycles and e-bikes each year than the market can absorb? There are a few reasons:

1) Sunk costs. The industry has invested billions of dollars in manufacturing infrastructure in Asia. The only way to cover the costs of those facilities is to keep the factories cranking out bicycles. 

2) Economies of scale. Most manufacturing is firmly based on this principle which is in general terms, the more units you produce, the less that additional unit will cost, and hence your average cost goes down, resulting in higher profit margins.

3) Ride it out the door. The belief that consumers want a complete bike that they can ride out the door, whether it is the shop’s door or the consumer’s own door. This convention has moved online and now requires the consumer to choose the groupset (good , better, best) and the wheelset (usually better and best) and navigate a series of drop down menus to specify handlebar width, crank arm length, chain rings selection etc. Add to cart and wait.

4) The bike for every price. The belief that to always make the sale, the bike shop or bike brand must have at least one of each model, in the offered selection of colors, in all sizes and for each components and wheelset category (Good, Better, Best).

5) Model year. The arbitrary notion that a new model of each bike has to be produced each year in order to convince the consumer to buy.